-- During the nine months ended September 30, 2012, Horn increased its
investment in intangible exploration assets by $30.0 million. The
majority of the costs incurred during 2012 related to drilling the
Shabeel-1 and Shabeel North-1 exploration wells in the Dharoor Valley
block. The remaining expenditures are PSA related expenditures and
general and administrative costs. The Company and its Partners fulfilled
the initial exploration period work commitments under the Dharoor Valley
and Nugaal Valley PSAs with the drilling of the Shabeel wells.
-- While the Company was disappointed that the first two exploration wells
in Puntland (Somalia) did not flow oil, the Company remains highly
encouraged that all of the critical elements exist for oil
accumulations. Horn recently completed demobilization of the drilling
rig and associated equipment and both well sites have been restored to
original condition.
-- Horn and its partners have entered into the next exploration period in
both the Dharoor Valley and Nugaal Valley PSAs which each carry a
commitment to drill one exploration well in each block by October 2015.
-- Efforts are now focused on making preparations for a seismic acquisition
campaign in the Dharoor PSA which will include a regional seismic
reconnaissance grid in the previously unexplored eastern portion of the
basin as well as prospect specific seismic to delineate a drilling
candidate in the western portion of the basin where an active petroleum
system was confirmed by the recent drilling at the Shabeel-1 and Shabeel
North-1 locations.
-- Operating expenses of $0.5 million were recorded during the third
quarter of 2012 ($1.6 million during the nine months ended September 30,
2012). These were offset by finance income of $23.0 million during the
third quarter of 2012 ($9.0 million during the nine months ended
September 30, 2012). Finance income primarily relates to fair market
value adjustments of the Company's warrant liabilities. These fair
market value adjustments are performed as the Company has an obligation
to issue shares for a price (denominated in Canadian dollars) that is
not fixed in the Company's functional currency (United States dollars).
-- As at September 30, 2012, the Company had cash of $16.1 million and
working capital of $12.4 million as compared to cash of $27.6 million
and working capital of $25.9 million at December 31, 2011. The Company's
liquidity and capital resource position has been reduced during 2012
primarily due to expenditures incurred on the drilling of the Shabeel-1
and Shabeel North-1 exploration wells offset partially by the non-
brokered private placement which raised CAD$15.0 million in June 2012.
-- Horn continues to investigate potential joint venture partnerships and
also is reviewing new venture opportunities in the region.
-- The Board has approved granting 2,820,000 incentive stock options to
certain directors, officers and other eligible persons of the Company.
The options will have a three year term, vesting provisions consistent
with the existing outstanding options, and will be priced at $0.32 per
share (or the closing price on November 21, 2012 if higher).

Horn President and CEO, David Grellman, commented, "We remain very encouraged by the exploration potential of our Jurassic rift basins in Puntland. We have committed to the next exploration phase in both PSAs and plan to aggressively explore both areas to confirm this potential. We are also optimistic that the political progress in Somalia will continue and allow oil and gas exploration in the region to expand."

Horn holds a 60% working interest in the Dharoor and Nugaal Valley blocks and is the operator. The other partners in the blocks are Range Resources (20%) and Red Emperor (20%). Africa Oil Corporation holds an approximate 45% equity interest in Horn.

Horn Petroleum Corporation is a Canadian oil and gas company with assets in Puntland, Somalia. The Corporation holds a 60% interest and operatorship in the Dharoor and Nugaal blocks encompassing a Jurassic Rift Basin on trend and analogous to the large oil fields in Yemen. The Corporation's shares are listed on the TSX Venture Exchange under the symbol "HRN".

ON BEHALF OF THE BOARD

David Grellman, President and CEO

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya, Ethiopia and Mali as well as Puntland (Somalia) through its 45% equity interest in Horn Petroleum Corporation. Africa Oil's East African holdings are in within a world-class exploration play fairway with a total gross land package in this prolific region in excess of 300,000 square kilometers. The East African Rift Basin system is one of the last of the great rift basins to be explored. New discoveries have been announced on all sides of Africa Oil's virtually unexplored land position including the major Albert Graben oil discovery in neighboring Uganda. Africa Oil's recent Ngamia-1 discovery extends the Albert Graben play into Kenya where Africa Oil along with partner Tullow holds a dominant acreage position. Newly acquired seismic and gravity data show robust leads and prospects throughout Africa Oil's project areas. The Company is listed on the TSX Venture Exchange and on First North at NASDAQ OMX-Stockholm under the symbol "AOI".

ON BEHALF OF THE BOARD

Keith C. Hill, President and CEO

FORWARD-LOOKING INFORMATION

Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable Canadian securities legislation). Such statements and information (together, "forward looking statements") relate to future events or the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities, ultimate recovery of reserves or resources and dates by which certain areas will be explored, developed or reach expected operating capacity, that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in oil prices, results of exploration and development activities, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government or other regulatory approvals, actual performance of facilities, availability of financing on reasonable terms, availability of third party service providers, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements.

Africa Oil's Certified Advisor on NASDAQ OMX First North is Pareto Ohman AB.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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